Posted December 07, 2015 19:38:ten

Australia’s growing video game sector is hoping tiny start-up studios will advantage from the innovation statement released by the Federal Government.

Many in the market said until now, a lack of investment had hampered what could be a lucrative export business.

Around the planet, the interactive gaming sector is worth $ 77 billion.

Australia’s market accounts for about three per cent of that trade, with retail and on the internet sales of video games amounting to about $ two.four billion last year.

Ben Lee, who employs a group of 14 men and women at his Sydney game development enterprise, mentioned new tax incentives to encourage private investment in start-ups would be welcomed by a lot of fledgling gaming studios.

“Much more and more folks are playing games simply because game development has matured,” Mr Lee said.

It is all about coming up with various technologies which then assists us make bigger and far better products. Innovation is a single of our biggest strengths right here.

Ben Lee, Sydney game developer

When Mr Lee started his business five years ago, he and his organization companion struggled to get private investment so they relied on loans from relatives.

“We type of bootstrapped ourselves, and utilized our personal savings to start off up,” he stated.

“Traditionally investors do not see the game business as a spot to invest a lot of cash.

“We’re very independent, we do not have any funding.”

Mr Lee’s studio makes mobile, console and Pc games and has partnered with Microsoft, Google and virtual reality headset maker Oculus.

The Government has announced it will draft relaxed insolvency laws, and Mr Lee stated numerous start-ups would cheer that move.

“To make confident that game developers in Australia will have the complete time to create a globe-class product,” he mentioned.

Mr Lee stated his firm was innovating by moving into virtual reality games.

“It’s all about coming up with diverse technology which then assists us make bigger and much better products. Innovation is one particular of our largest strengths right here,” he mentioned.

Access to capital ‘number one problem stopping innovation’

Professor Andy Dong, the Warren Centre chair for engineering innovation at the University of Sydney, encourages his students to become innovators and to experiment in industries which are just acquiring off the ground.

“One particular of the most interesting questions we get from students is, ‘where will I work when I finish my degree?'” Professor Dong said.

“What I inform them is you ought to be involved in starting those industries that you believe you’ll be operating in.”

Professor Andy Dong, Sydney University Photo: Professor Andy Dong encourages his students to become innovators. (ABC News: Bridget Brennan)

But Professor Dong said young Australian innovators would find that raising capital their crucial challenge.

“They need to have to have a number of policy leaders that permit these particular businesses access to capital,” he said.

“Now this is particularly for the start off-ups, in the pure 20s — 2006 to 2011 — commence-up businesses were accountable for the generation of about 1.44 million jobs versus 400,000 in job loss from other industries.

“Now that’s a really important number, but what it does mean regrettably is that we require to be capable to be confident that we are resourcing these start-up organizations adequately to make sure that they have the financing that is necessary for them to scale up, to be able to address troubles not only both at a national scale in Australia but internationally.”

While Professor Andy Dong is optimistic about Australia’s future, he suspects the Government will uncover it challenging to get enough workers to drive its new innovation economy.

“There is a international competition for talent in this particular area,” he mentioned.

“So I feel it is great that we are making the visa category that will assist begin-ups right here to attract folks who would like to come to Australia to work and bring that.

“But as properly at the same time, it is absolutely crucial that we invest in our own students coming via to make certain that we will usually have a steady pipeline of students with [science, technology, engineering and mathematics] capabilities.”

Topics: small-business, federal-government, australia

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